3.
Islamic Republic of Afghanistan
Afghanistan National Development Strategy
1387 – 1391 (2008 – 2013)
A Strategy for Security, Governance, Economic Growth & Poverty
Reduction
4.
5. ﺑﺴﻢ اﷲ اﻟﺮﺣﻤﻦ اﻟﺮﺣﻴﻢ
In the Name of Allah, the Most Compassionate, the Most Merciful
إن اﻟﻠﻪ ﻻ ﻳﻐ ﱢﺮ َﺎ ﺑﻘﻮم ﺣ ﱠﻰ ﻳﻐﻴ ُوا َﺎ ﺑﺄﻧﻔﺴﻬﻢ
ْ ِ ِ ُ ْ َ ِ ِ ﱠ ّ َ َ ُ َﻴ ُ ﻣ ِ َ ْ ٍ َﺘ ُ َ ﱢﺮ ْ ﻣ
Verily, never will Allah change the condition of people unless they
change it themselves (013,011)
VISION FOR AFGHANISTAN
By the solar year 1400 (2020), Afghanistan will be:
A stable Islamic constitutional democracy at peace with itself and its neighbors, standing
with full dignity in the international family.
A tolerant, united, and pluralistic nation that honors its Islamic heritage and the deep
seated aspirations toward participation, justice, and equal rights for all.
A society of hope and prosperity based on a strong, private-sector led market economy, so-
cial equity, and environmental sustainability.
OUR GOALS
The Afghanistan National Development Strategy (ANDS) serves as Afghanistan’s Poverty
Reduction Strategy Paper (PRSP) and uses the pillars, principles and benchmarks of the Af-
ghanistan Compact as a foundation. The pillars and goals of the ANDS are:
1. Security: Achieve nationwide stabilization, strengthen law enforcement, and improve
personal security for every Afghan.
2. Governance, Rule of Law and Human Rights: Strengthen democratic processes and in-
stitutions, human rights, the rule of law, delivery of public services and government ac-
countability.
3. Economic and Social Development: Reduce poverty, ensure sustainable development
through a private-sector-led market economy, improve human development indicators,
and make significant progress towards the Millennium Development Goals (MDGs).
A further vital and cross-cutting area of work is eliminating the narcotics industry, which
remains a formidable threat to the people and state of Afghanistan, the region and beyond.
Afghanistan National Development Strategy (ANDS) i
8. Foreword
iv Afghanistan National Development Strategy (ANDS)
9. In the name of Allah, the most Merciful, the most Compassionate
Six and one-half years ago, the people of Afghanistan and the international community joined hands
to liberate Afghanistan from the grip of international terrorism and to begin the journey of rebuilding
a nation from a past of violence, destruction and terror. We have come a long way in this shared jour-
ney.
In a few short years, as a result of the partnership between Afghanistan and the international community,
we were able to create a new, democratic Constitution, embracing the freedom of speech and equal rights
for women. Afghans voted in their first-ever presidential elections and elected a new parliament. Today
close to five million Afghan refugees have returned home, one of the largest movements of people to
their homeland in history.
Thousands of schools have been built, welcoming over six million boys and girls, the highest level ever
for Afghanistan. Hundreds of health clinics have been established boosting our basic health coverage
from a depressing 9 percent six years ago to over 85 percent today. Access to diagnostic and curative ser-
vices has increased from almost none in 2002 to more than forty percent. We have rehabilitated 12,200 km
of roads, over the past six years. Our rapid economic growth, with double digit growth almost every
year, has led to higher income and better living conditions for our people. With a developing road net-
work and a state-of-the-art communications infrastructure, Afghanistan is better placed to serve as an
economic land-bridge in our region.
These achievements would not have been possible without the unwavering support of the interna-
tional community and the strong determination of the Afghan people. I hasten to point out that our
achievements must not distract us from the enormity of the tasks that are still ahead. The threat of
terrorism and the menace of narcotics are still affecting Afghanistan and the broader region and ham-
pering our development. Our progress is still undermined by the betrayal of public trust by some
functionaries of the state and uncoordinated and inefficient aid delivery mechanisms. Strengthening
national and sub-national governance and rebuilding our judiciary are also among our most difficult
tasks.
To meet these challenges, I am pleased to present Afghanistan’s National Development Strategy
(ANDS). This strategy has been completed after two years of hard work and extensive consultations
around the country. As an Afghan-owned blueprint for the development of Afghanistan in all spheres
of human endeavor, the ANDS will serve as our nation’s Poverty Reduction Strategy Paper. I am con-
fident that the ANDS will help us in achieving the Afghanistan Compact benchmarks and Millen-
nium Development Goals. I also consider this document as our roadmap for the long-desired objec-
tive of Afghanization, as we transition towards less reliance on aid and an increase in self-sustaining
economic growth.
I thank the international community for their invaluable support. With this Afghan-owned strategy, I
ask all of our partners to fully support our national development efforts. I am strongly encouraged to
see the participation of the Afghan people and appreciate the efforts of all those in the international
community and Afghan society who have contributed to the development of this strategy. Finally, I
thank the members of the Oversight Committee and the ANDS Secretariat for the preparation of this
document.
Hamid Karzai
President of the Islamic Republic of Afghanistan
Foreword v
10. Message from the
Oversight Committee
For the preparation of the Afghanistan National Development Strategy
vi Afghanistan National Development Strategy (ANDS)
11. In the name of Allah, the most Merciful, the most Compassionate
We are pleased to present the Afghanistan National Development Strategy, which reflects the com-
mitment of the Islamic Republic of Afghanistan to poverty reduction and private sector-led economic
growth for a prosperous and stable Afghanistan. The ANDS Oversight Committee (OSC) was man-
dated by the Government to produce a Millennium Development Goals-based national strategy that
is Afghan-owned and meets the requirements for a Poverty Reduction Strategy Paper. The OSC met
on a regular basis to design, discuss and oversee the development of the strategy, including the iden-
tification of the needs and grievances of the people, and the prioritization of resource allocations and
actions. To embrace ‘Afghanization” and ownership, the OSC facilitated inclusive and extensive con-
sultations both at national and sub-national levels.
Sustained fiscal support and continuous evaluation and monitoring are essential now to meet the
challenges ahead related to ANDS implementation. The democratic aspirations of the Afghan people
are high, yet financial resources remain limited. While much has been accomplished since 2001, more
remains to be done as we move from “Compact to Impact”. The Afghan Government with support
from the international community must act decisively, strategically, and with an absolute commit-
ment to the ANDS goals and vision.
We look forward to working with our government colleagues, civil society representatives, tribal eld-
ers and religious scholars, the private sector, the international community and, most importantly, fel-
low Afghans to implement the ANDS, to help realize the Afghanistan Compact benchmarks and Mil-
lennium Development Goals.
Message from the Ovresight Committee vii
13. In the name of Allah, the most Merciful, the most Compassionate
The Afghanistan National Development Strategy (ANDS) could not have been developed without the generous
contribution of many individuals and organizations. The ANDS was finalized under the guidance of the Over-
sight Committee, appointed by HE President Hamid Karzai and chaired by H.E. Professor Ishaq Nadiri, Senior
Economic Advisor to the President and Chair of the ANDS Oversight Committee. The committee included: H.E.
Rangeen Dadfar Spanta, Minister of Foreign Affairs; Anwar-ul-Haq Ahady, Minister of Finance; H.E. Jalil
Shams, Minister of Economy; H.E. Sarwar Danish, Minister of Justice; H.E. Haneef Atmar, Minister of Education;
H.E. Amin Farhang, Minister of Commerce; and H.E. Zalmai Rassoul, National Security Advisor.
We would like to sincerely thank the First Vice-President and Chair of the Economic Council, H.E. Ahmad Zia
Massoud. Special thanks are also due to H.E. Hedayat Amin Arsala, Senior Minister and H.E. Waheedulah Shah-
rani, Deputy Minister of Finance and the Ministry of Finance team. In addition, we would like to thank the Su-
preme Court, the National Assembly, Government Ministries and Agencies, Provincial Authorities, Afghan Em-
bassies abroad, national Commissions, the Office of the President, Civil Society Organizations, and International
Community.
All Ministers, deputy ministers and their focal points, religious leaders, tribal elders, civil society leaders, all
Ambassadors and representatives of the international community in Afghanistan; and all Afghan citizens. Na-
tional and international agencies participated actively in the ANDS consultations. Their contributions, comments
and suggestions strengthened the sectoral strategies, ensuring their practical implementation. Thanks are also
due to the Ministry of Rural Rehabilitation for their significant contributions to the subnational consultations.
Special thanks are further due to the Presidents Advisors, Daud Saba and Noorullah Delawari for their contribu-
tions, as well as Mahmoud Saikal for his inputs. We are also indebted to the Provincial Governors and their staff
for their contributions, support and hospitality to the ANDS preparations.
Special thanks go to Wahidullah Waissi, ANDS/PRS Development Process Manager, for his invaluable contribu-
tion and for the efforts of his team of young Afghan professionals who dedicated themselves tirelessly to com-
pleting the I-ANDS, Afghanistan Compact and the full ANDS in consultation with both national and interna-
tional partners. The Sector Coordinators included Rahatullah Naeem, Farzana Rashid Rahimi, Shakir Majeedi,
Attaullah Asim, Mohammad Ismail Rahimi, Zalmai Allawdin, Hedayatullah Ashrafi, Shukria Kazemi, Saifurah-
man Ahmadzai, and; the Sub-National Consultations Team consisted of Mohammad Yousuf Ghaznavi,
Mohammad Fahim Mehry, Shahenshah Sherzai, Hekmatullah Latifi, Sayed Rohani and Osman Fahim; and Prof.
Malik Sharaf, Naim Hamdard, Saleem Alkozai, Mir Ahmad Tayeb Waizy, Sayed Shah Aminzai, Khwaga Kakar
and Mohammad Kazim. Thanks to Nematullah Bizhan for his special contribution from the JCMB Secretariat. We
are also indebted to the many national and international advisers who supported this effort. In particular, we
would like to thank Zlatko Hurtic, Paul O’Brien, Jim Robertson, Barnett Rubin, Peter Middlebrook, Richard
Ponzio, Anita Nirody, Shakti Sinha, Ashok Nigam, Christopher Alexander and Ameerah Haq.
Finally, I would like to thank all who contributed towards this endeavor in preparation of the first Afghanistan
National Development Strategy, a milestone in our country’s history and a national commitment towards eco-
nomic growth and poverty reduction in Afghanistan.
Adib Farhadi,
Director, Afghanistan National Development Strategy, and
Joint Coordination and Monitoring Board Secretariat
The complete list of contributors will be attached shortly.
Acknowledgments ix
15. Map of Afghanistan ......................................................................................................................................... iii
Foreword............................................................................................................................................................. iv
Message from the Oversight Committee...................................................................................................... vi
Acknowledgments.............................................................................................................................................. x
Acronyms and Abbreviations....................................................................................................................... xiv
Glossary of Afghan Terms ........................................................................................................................... xvii
INTRODUCTION .............................................................................................................................................. 1
Background .......................................................................................................................................................... 1
Achievements Since 2001.................................................................................................................................... 1
Afghanistan’s Challenges .................................................................................................................................. 3
International Support for Afghanistan ............................................................................................................. 5
The Afghanistan National Development Strategy ......................................................................................... 5
PART I .................................................................................................................................................................. 3
PROCESS, GOALS AND POLICY DIRECTIONS....................................................................................... 3
CHAPTER 1 ......................................................................................................................................................... 5
THE ANDS: AN OVERVIEW .......................................................................................................................... 5
Security.................................................................................................................................................................. 5
Governance, rule of law, justice and human rights ........................................................................................ 6
Economic and social development .................................................................................................................... 6
Cross-Cutting Issues.......................................................................................................................................... 13
Enhancing Aid Effectiveness and Aid Coordination.................................................................................... 14
Implementation and Monitoring of the ANDS ............................................................................................. 15
CHAPTER 2 ....................................................................................................................................................... 17
THE PARTICIPATORY PROCESS AND PROVINCIAL DEVELOPMENT PLANS ......................... 17
Organizing principles and participation process ....................................................................................... 17
Consultation process ......................................................................................................................................... 19
Provincial Development Plans (PDPs)............................................................................................................ 20
Prioritization and sequencing of the PDPs..................................................................................................... 21
Integration of the PDPs into ANDS ................................................................................................................ 21
Outcomes from the provincial development planning process .................................................................. 22
Prioritization of the pillars................................................................................................................................ 22
Regional variation in priorities ........................................................................................................................ 24
Conclusion .......................................................................................................................................................... 25
CHAPTER 3 ....................................................................................................................................................... 27
THE POVERTY PROFILE ............................................................................................................................... 27
Data collection, poverty measurements and estimates ................................................................................ 27
Poverty estimates............................................................................................................................................... 28
Poverty in Afghanistan: main characteristics of inequality ......................................................................... 29
Most important causes of poverty: poverty correlates ................................................................................. 31
Who the poor are: the most vulnerable groups ............................................................................................. 33
Policy framework for poverty reduction........................................................................................................ 33
High priority sector policies for poverty reduction ...................................................................................... 34
Conclusion .......................................................................................................................................................... 36
PART II............................................................................................................................................................... 37
THE NATIONAL DEVELOPMENT STRATEGY ...................................................................................... 37
CHAPTER 4 ....................................................................................................................................................... 39
MACROECONOMIC FRAMEWORK ......................................................................................................... 39
Linking growth with poverty reduction and employment creation .......................................................... 40
Contents xi
16. Growth Projection and Strategy ...................................................................................................................... 44
Fiscal policy ........................................................................................................................................................ 46
Monetary policy ................................................................................................................................................. 48
Financing the ANDS.......................................................................................................................................... 50
Conclusion .......................................................................................................................................................... 51
CHAPTER 5 ....................................................................................................................................................... 53
SECURITY ......................................................................................................................................................... 53
Current situation................................................................................................................................................ 53
Policy framework............................................................................................................................................... 55
Security institutions........................................................................................................................................... 56
‘Right-Financing’ Security Sector Reform ...................................................................................................... 58
Sound Administration, Justice and Judicial System ..................................................................................... 59
Relations with nieghbors and international allies......................................................................................... 59
Conclusion .......................................................................................................................................................... 59
CHAPTER 6 ....................................................................................................................................................... 61
GOVERNANCE, RULE OF LAW & HUMAN RIGHTS ........................................................................... 61
Governance, Public Administration Reform and human rights ................................................................. 61
Justice .................................................................................................................................................................. 63
Religious affairs ................................................................................................................................................. 67
Conclusion .......................................................................................................................................................... 69
CHAPTER 7 ....................................................................................................................................................... 73
ECONOMIC AND SOCIAL DEVELOPMENT .......................................................................................... 73
Private sector development.............................................................................................................................. 73
Energy ................................................................................................................................................................. 77
Water and irrigation .......................................................................................................................................... 82
Agriculture and rural development................................................................................................................ 87
Transport............................................................................................................................................................. 93
Information and Communications Technology ............................................................................................ 96
Urban development......................................................................................................................................... 100
Mining ............................................................................................................................................................... 105
Health and Nutrition....................................................................................................................................... 108
Education .......................................................................................................................................................... 113
Culture, youth and media .............................................................................................................................. 120
Social protection............................................................................................................................................... 123
Refuges, returnees and internally displaced persons ................................................................................. 129
Conclusion ........................................................................................................................................................ 133
CHAPTER 8 ..................................................................................................................................................... 143
CROSS-CUTTING ISSUES .......................................................................................................................... 143
Regional cooperation....................................................................................................................................... 143
Counter narcotics............................................................................................................................................. 145
Anti-corruption ................................................................................................................................................ 146
Gender equity................................................................................................................................................... 147
Capacity development .................................................................................................................................... 149
Environment..................................................................................................................................................... 150
Conclusion ........................................................................................................................................................ 151
PART III ........................................................................................................................................................... 153
AID EFFECTIVENESS AND COORDINATION..................................................................................... 153
CHAPTER 9 ..................................................................................................................................................... 155
AID EFFECTIVENESS AND COORDINATION..................................................................................... 155
Paris Declaration and Afghanistan Compact............................................................................................... 155
xii Afghanistan National Development Strategy (ANDS)
17. Current situation: assessment of aid effectiveness...................................................................................... 155
Aid effectiveness strategy framework .......................................................................................................... 156
Implementation and monitoring ................................................................................................................... 160
Conclusion ........................................................................................................................................................ 162
PART IV ........................................................................................................................................................... 163
IMPLEMENTATION AND MONITORING ............................................................................................ 163
CHAPTER 10 ................................................................................................................................................... 165
IMPLEMENTATION FRAMEWORK ........................................................................................................ 165
Lessons learned during the Interim ANDS.................................................................................................. 165
Implementation framework and integrated approach ............................................................................... 166
Implementation Plan and the ANDS implementation cycle ..................................................................... 167
Implementation Cycle..................................................................................................................................... 167
Role of the National Budget and the MTFF ................................................................................................. 168
Role of the MTFF ............................................................................................................................................. 171
Role of the Control and Audit Office (CAO) ............................................................................................... 171
Budget management framework, prioritization and funding requirements for the implementation of
the ANDS.......................................................................................................................................................... 171
National implementation structures ............................................................................................................. 172
Sub-national implementation structures ...................................................................................................... 172
Coordination structures.................................................................................................................................. 172
Integrating conflict management into sector strategies.............................................................................. 173
Conclusion ........................................................................................................................................................ 173
CHAPTER 11 ................................................................................................................................................... 175
MONITORING FRAMEWORK .................................................................................................................. 175
ANDS monitoring and evaluation principles.............................................................................................. 175
Institutional structure...................................................................................................................................... 176
Monitoring and evaluation reporting ........................................................................................................... 178
Indicators for monitoring ............................................................................................................................... 178
Monitoring and evaluation framework ........................................................................................................ 180
Conclusion ........................................................................................................................................................ 180
CHAPTER 12 ................................................................................................................................................... 185
CONCLUSION................................................................................................................................................ 185
APPENDICES.................................................................................................................................................. 189
Contents xiii
19. AC Afghanistan Compact DAB Da Afghanistan Bank (Central Bank of
ACBAR Agency Coordinating Body for Afghan Afghanistan)
Relief DABM Da Afghanistan Breshna Moassessa (the
ADB Asian Development Bank Afghan electric utility)
ADC Area Development Councils DAC District Advisory Committee
AfCERT Afghanistan Cyber Emergency Response DCN District Communication Network
Team EC European Commission
AFMIS Afghanistan Financial Management Sys- ECOTA Economic Cooperation Organization
tem Trade Agreement
AGO Attorney General’s Office EPAA Export Promotion Agency of Afghanistan
AIHRC Afghanistan Independent Human Rights EPHS essential package of hospital services
Commission EU European Union
AISA Afghanistan Investment Support Agency FCCS Foundation for Culture and Civil Society
ANA Afghanistan National Army FDI Foreign Direct Investment
ANDMA Afghanistan National Dis-aster Manage- FSMS Food Security Monitoring Survey
ment Authority GDP Gross Domestic Product
ANP Afghan National Police GIAAC General and Independent Administration
ANSA Afghanistan National Standards Author- Against Corruption and Bribery
ity GIS Geographical Information System
ANSF Afghan National Security Forces GoA Government of Afghanistan
ANWP Afghanistan National Welfare Program GSM Global System Mobile
APPPA Afghanistan Participatory Poverty As- Ha Hectare
sessment HCS Health Care Service
ARCSC Administrative Reform and Civil Service HIPC Heavily Indebted Poor Countries
Commission HIV Human immunodeficiency virus
ARDS Afghan Reconstruction & Development HIV/AIDS Human Immune-deficiency Vi-
Services rus/Acquired Immune Deficiency Syn-
ARDZ Agriculture and Rural Development drome
Zones HNS Health and Nutrition Sector
ARTF Afghanistan Reconstruction Trust Fund HNSS Health and Nutrition Sector Strategy
ASYCUDA Automated System for Customs Data IAGs Illegal Armed Groups
ATRA Afghanistan Telecommunication Regula- I-ANDS Interim Afghanistan National Develop-
tion Authority ment Strategy
AUWSSC Afghanistan Urban Water Supply and IARCSC Independent Administrative Reform and
Sewerage Corporation Civil Service Commission
BPFA Beijing Platform for Action IATA International Air Transport Association
BPHS basic package of health services ICAO International Civil Aviation Organization
CAO Control and Audit Office ICCD Inter-ministerial Commission for Capac-
CAR Central Asian Republics ity Development
CARD Comprehensive Agriculture and Rural ICE Inter-Ministerial Commission on Energy
Development ICT Information and Communications Tech-
CAREC Central Asian Regional Economic Coop- nology
eration IDLG The Independent Directorate for Local
CASA Central and South Asia Governance
CBN Cost of Basic Needs IDP Internally Displaced Persons
CCCG Cross Cutting Consultative Group IDPs Internally Displaced Persons
CDCs Community Development Councils IEC Independent Electoral Commission
CEDAW Convention on the Elimination of all ILO International Labor Organization
forms of Discrimination against Women IMF International Monetary Fund
CG Consultative Group ISAF International Security Assistance Force
CIS Commonwealth of Independent States Air Command
CMRS Central Monitoring and Reporting Sys- IT Information Technology
tem IWRM Integrated Water Resources Management
CN counter narcotics JCMB Joint Monitoring and Coordination Board
CNPA Counter Narcotics Police of Afghanistan Km Kilometer
CNTF Counter Narcotics Trust Fund KWH Kilowatt-Hour (Unit of electric energy)
CSO Central Statistics Office LOTFA Law and Order Trust Fund
CSTI Civil Services Training Institute M&E Monitoring and Evaluation
MoCIT Ministry of Communications & Informa-
tion Technology
MCN Ministry of Counter Narcotics
MDGs Millennium Development Goals
Acronyms and Abbreviations xv
20. MEAs Multilateral Environmental Agreements PAR Public Administration Reform
MIS Management Information Systems PAYG Pay-as-you-go
MoD Ministry of Defense PDPs Provincial Development Plans
MoE Ministry of Economy PFM Public Financial Management
MoE Ministry of Education PIO Project Implementation Office
MoF Ministry of Finance PIP Public Investment Program
MoFA Ministry of Foreign Affairs PPA Power Purchase Agreement
MoHE Ministry of Higher Education PRDP Pro-active Regional Diplomacy Program
MoI Ministry of Interior PRSP Poverty Reduction Strategy Paper
MoJ Ministry of Justice PRT Provincial Reconstruction Team
MoLSAMD Ministry of Labor, Social Affairs, Martyrs PRTs Provincial Reconstruction Teams
and the Disabled RBA River Basin Agency
MoM Ministry of Mines RED Rural Road Evaluation Model
MoPH Ministry of Public Health RIMU Reform Implementation Management
MoU Memorandum of Understanding Unit
MoUD Ministry of Urban Development SAARC South Asian Association for Regional
MoWA Ministry of Women’s Affairs Cooperation
MRRD Ministry of Rural Rehabilitation and De- SCO Shanghai Cooperation Organization
velopment SCWAM Supreme Council for Water Affairs Man-
MTFF Medium Term Financial Framework agement
MW Megawatt SEPS South-East Power System
NABDP National Area-Based Development Pro- SMEs Small and Medium Enterprises
gram SNC Sub-National Consultation
NAPWA National Action Plan for the Women of SOE State Owned Enterprises
Afghanistan SPECA Special Program for the Economies of
NATO North Atlantic Treaty Organization Central Asia
NDCS National Drug Control Strategy SPS Sanitary and Phyto-sanitary
NEPA National Environmental Protection TA Tripartite Agreement
Agency (GoA) TAG Technical Advisory Group
NEPS North-East Power System TWG Technical Working Group
NGO Non-Governmental Organization TWGs Technical Working Groups
NIRA National Internet Registry of Afghani- UN United Nations
stan UNAMA United Nations’ Assistance Mission to
NRAP National Rural Accessibility Program Afghanistan
NRVA National Risk and Vulnerability Assess- UNCAC United Nations Convention Against Cor-
ment ruption
NSC National Statistical Council UNDP United Nations Development Program
NSDP National Skills Development Program UNHCR United Nations High Commission for
NSP National Solidarity Program Refugees
NVETA Proposed National Vocational Education UNICEF United Nations International Children's
and Training Authority Emergency Fund
ODA Official Development Assistance UNIFEM United Nations Development Fund for
OECD Organization for Economic Cooperation Women
and Development UNODC United Nations Office on Drugs and
OEF Operation Enduring Freedom Crime
OMO Open Market Operations USAID United States Agency for International
OSC Oversight Committee Development
OSCE Organization for Security and Coopera- WATSAN Water and Sanitation Committees
tion in Europe WB World Bank
P&G Pay and grading WCS Wildlife Conservation Society
PAG Policy Action Group WTO World Trade Organization
xvi Afghanistan National Development Strategy (ANDS)
21. Glossary of Afghan Terms
Amu Darya A river originated from Pamir mountain and flowing in the northern region of
Afghanistan
Bank-e-Milli National Bank
Darya River
Gozar Smallest Administrative Unit inside the Urban area
Imam An Islamic leader, often the leader of a mosque
Jirgas Local Consultation Meetings
Kareze Underground canals connecting wells uses as traditional irrigation system
Kuchi Nomad
Loya Jirga Grand Council, ”Grand Assembly of elders”
Madrassa A school, where mostly Islamic Studies are concerned
Meshrano Jirga Senate (Upper House of Assembly)
Mirab A person responsible for water management in a community
Sharia Islamic Laws
Shura Traditional or Local Council (Shuras, pl)
Taqnin Law making, legislation
Ulama Religious Scholars
Wolosi Jirga National Assembly (Lower House of Assembly
Zakat Islamic concept of tithing and alms. It is an obligation on Muslims to pay 2.5%
of their wealth to specified categories in society when their annual wealth ex-
ceeds a minimum level. In addition, Zakat is one of the basic principles of Is-
lamic economics, based on social welfare and fair distribution of wealth.
AFGHAN CALENDAR
1. Hamal March 21 7. Meezaan September 23
2. Saur April 21 8. Aqrab October 23
3. Jawza May 2 9. Qaus November 22
4. Sarataan June 22 10. Jaddi December 22
5. Asad July 23 11. Dalwa January 21
6. Sunbula Aug 23 12. Hoot February 20
Glossary of Afghan Terms xvii
22.
23. INTRODUCTION
BACKGROUND had been disrupted and in many cases, includ-
ing for all girls and women, ended. Today Af-
Following almost three decades of war, the ghanistan has among the highest rates of illit-
challenges facing Afghanistan’s development eracy in the world. Yet despite these desperate
remain immense. By 1380 (2001), the ravages conditions, since 2001 the country has had
of conflict had bestowed upon Afghan citizens some remarkable achievements. The progress
and the incumbent administration an inheri- that has been made should be measured
tance of debt not wealth. With the Taliban against the desperate conditions that prevailed
dominating the political landscape from 1375 at the time of the fall of the Taliban. While Af-
(1996) onwards, Afghanistan had been moving ghanistan still faces many enormous chal-
backwards in all aspects. The results of war, lenges, the progress that has been made gives
the destruction of core institutions of state and cause for some optimism that with the deter-
a heavily war torn economy led to unrivaled mination of the Afghan people to rebuild their
levels of absolute poverty, national ill health, lives and their country, the transformation to a
large scale illiteracy and the almost complete peaceful and prosperous can be achieved.
disintegration of gender equity. And yet, fol-
lowing six years of reconstruction, at a cost of The goals of the ANDS for the next five years
billions of dollars, the path to prosperity from ought to be viewed against what has been ac-
extreme poverty remains as distant as ever. complished during the last six years. Only
Insecurity, poverty, corruption and the expand- some of the most significant achievements can
ing narcotics industry signify that while the be mentioned here.
challenges facing Afghanistan have changed in
nature, they have not necessarily changed in
magnitude. Yet, the price of securing peace and Political achievements:
freedom at this pivotal moment in history will In 1380 (2001) the Bonn Agreement estab-
be nothing compared to the long term costs of lished a roadmap for the political trans-
failure both for Afghanistan and the interna- formation of Afghanistan to a legitimate
tional community. Averting failure and estab- democratic state. The targets set in the
lishing Afghanistan on a virtuous path towards Bonn Agreement were fully met on time
peace, stability and prosperity are therefore the and included:
cornerstones of the new Afghan National De-
velopment Strategy (ANDS). At the core of the The Transitional Administration was estab-
ANDS is a policy of Afghanization, meaning lished to guide the process. It derived its
that ANDS has been fully developed and authority through an Emergency Loya
owned by Afghanistan. Jirga, the first genuinely representative Af-
ghan national meeting in decades.
In 1383 (2004) Afghanistan adopted its first
ACHIEVEMENTS SINCE 2001 constitution in 30 years, which laid the po-
In 2001 Afghanistan was certainly a thoroughly litical and development foundation for the
devastated country in virtually every respect. country and established legal protections
The political, social and economic structures of for private property and a market econ-
the country had been severely damaged or omy.
completely destroyed. Massive numbers of Free and fair democratic elections for Presi-
Afghans had left as refugees, had died during dent, the National Assembly and Provin-
the conflict or were severely disabled. Every cial Councils were conducted. 76 percent
family had paid a price – many had to cope of eligible voters participated in the presi-
with the loss of main breadwinner. For the dential election. Women were elected to 27
young people that remained, their education
Introduction 1
24. percent of the seats in the National Assem- 142,500 of who nearly 40,000 are female.
bly. Fifty thousand of these teachers have re-
ceived in-service teacher training.
After the successful completion of the Bonn
Agreement, Afghanistan and the interna- Major advances have been made in extend-
tional community entered into a new part- ing health care services throughout the
nership, based upon the Afghanistan Com- country and rebuilding a decimated educa-
pact, which was agreed at the London Con- tional system. The percentage of the popu-
ference of 1384 (2005). The Compact set lation living in districts where the Basic
ambitious goals for comprehensive state Package of Health Services is being imple-
building, setting benchmarks in all sectors mented has increased from 9 percent in
of security, governance, and development, 2003 to 82 percent in 2006.
including the cross-cutting goals of
Over 2.5 million people have benefited
counter-narcotics and regional coopera-
from social protection arrangements cover-
tion.
ing (i) martyr’s families; (ii) disabled with
In 1385 (2006) the new National Assembly war-related disabilities; (iii) orphans and
began its work, including the approval of a children enrolled in kindergartens; (iv) vic-
new cabinet; a new Chief Justice and other tims of natural disasters; (v) pensioners;
judges for the Supreme Court; and the Na- and (vi) unemployed.
tional Budget. A new Attorney General
Measurable progress has been achieved
with a new mission to fight corruption was
since 2003 in improving rural livelihoods.
appointed. New Provincial Governors
Almost 20,000 km of rural access roads (i.e.,
were named.
all weather, village-to-village and village-
The disarmament, demobilization and rein- to-district centre roads) have been con-
tegration of ex-combatants has been com- structed or repaired, increasing access to
pleted. Today the national army and police markets, employment and social services.
forces are close to full strength. Afghani- More than 500,000 households (36 percent
stan is no longer a safe haven for terrorists. of villages) have benefited from small-scale
irrigation projects. Currently, 32.5 percent
of the rural population has access to safe
Social and Humanitarian Achieve- drinking water and 4,285 improved sanita-
ments: tion facilities have been provided. More
Since 1381 (2002), more than five million than 336,000 households have benefited
Afghan refugees have returned home. In from improved access to financial services.
1385 (2006) 342,925 Afghan refugees re- Some 18,000 CDCs have been established
turned from Pakistan and Iran and 1,004 and are implementing community-led de-
from other countries. More than 150,000 velopment projects. Efforts have made to
benefited from the assistance package pro- assist the poorest and most vulnerable.
vided by UNHCR.
The Government has so far distributed Economic Achievements:
30,000 residential plots of land to needy re- Macroeconomic stability has been main-
turning refugee families. tained, based upon disciplined fiscal and
From under one million in 2001 the school monetary policies. A new unified currency
population has grown to 5.7 million in 2007 was successfully introduced; inflation has
and new enrolments into Grade 1 have remained low while the exchange rate has
ranged between 12-14 percent per annum been stable.
in the last 5 years. Two million of the chil- Sixteen private commercial banks have
dren (or 35 percent) enrolled are girls – a 35 been licensed; a leasing and financing
percent increase in five years. The number company is operating; an equity fund is
of schools has trebled to 9,062 in 2007 in- underway to invest in local businesses.
cluding 1,337 all girls’ and 4,325 co- There are also thirteen microfinance insti-
educational schools. Similarly, the number
of teachers has increased seven-fold to
2 Afghanistan National Development Strategy (ANDS)
25. tutions providing services to almost Major advances have been made in open-
200,000 active clients in 27 provinces. ing up the telecommunications sector to
private sector investment under a ‘invest-
State owned enterprises are being privat-
ment friendly’ regulatory framework
ized, corporatized or liquidated.
aimed at maintaining a competitive market
A lively free and privately owned media for services, and phone subscribers have
have developed and over which people are increased from less than 20 thousand to
able to express political views freely – more than 5 million in less than 6 years.
which they do daily.
A rapid urbanization process has seen the
The legal and commercial infrastructure is urban population increase to almost a
being put in place for a market oriented quarter of the total population. Despite the
economy. pressures implied by rapid urbanization,
two million urban residents (31 percent of
Electricity capacity has almost doubled
the total urban population) have benefited
compared to 2002.
from investments in water supply and 12
Over 12,000 kilometers of roads have been percent from investment in sanitation in
rehabilitated, improved, or built. This in- major cities between 2002 and 2007.
cludes the ring road system, national high-
Afghanistan has world class mineral de-
ways, provincial roads and rural roads.
posits that are being opened up for explo-
Kabul International Airport has been ex- ration and development. The first major
panded and extensively rehabilitated. investment has recently been announced
for developing the Aynak copper deposits
Private airlines have entered the aviation
in central Logar province, an almost $3 bil-
sector and established air links throughout
lion investment after an extensive evalua-
the region.
tion of tenders from nine major interna-
A key bridge investment has opened up tional mining companies.
direct road links to Tajikistan and greatly
reduced transportation times through to When seen against the desperate conditions
Urumqi in China, one of the fastest grow- that prevailed in the country in 2001, these
ing trade hubs in the world. achievements constitute an impressive record.
The ANDS sets goals for the next five years that
Two million urban residents have benefited
will require even greater achievements.
from investments in water supply and 12
percent from investment in sanitation in
major cities between 2002 and 2007. AFGHANISTAN’S
About 35,000 water points 59 networks and CHALLENGES
1,713 water reservoirs and 23,884 demon-
stration latrines have been constructed. Few countries have simultaneously faced the
range and extent of challenges with which the
More than three million people have bene- people and Government of Afghanistan must
fited directly from the rural water supply now contend. After nearly three decades of
and sanitation activities in the country. continuous conflict the country emerged in late
Around a third of the provinces reported 2001 as a truly devastated state with its human,
some improvement in access to clean physical and institutional infrastructure de-
drinking water during the consultative stroyed or severely damaged. At that time the
process under the ANDS. UN Human Development Report ranked Af-
ghanistan as the second poorest country in the
Irrigation Rehabilitation has been given World. In addition to the widespread poverty,
high priority over the past four or five the Government must deal with continuing
years. Of some 2,100 rehabilitation pro- threats to security from extremists and terror-
jects, approximately 1,200 have been com- ists, weak capacity of governance and corrup-
pleted and have been placed back into tion; a poor environment for private sector in-
commercial service. vestment, the corrosive effects of a large and
growing narcotics industry; and major human
Introduction 3
26. capacity limitations throughout the public and Economic governance is weak. The Gov-
private sectors. Meeting these challenges and ernment is pursuing comprehensive eco-
rebuilding the country will take many years nomic reform, including the introduction
and require consistent international support. of new commercial laws and regulations,
but the establishment of institutions
The successful transformation of Afghanistan needed for effective implementation and
into a secure, economically viable state that can enforcement are largely lacking and will
meet the aspirations of the Afghan people, live take years to develop.1
at peace with itself and its neighbors and con-
Afghanistan’s commercial connections to
tribute to regional and international stability
regional and global economies were se-
will depend upon the effective utilization of all
verely disrupted and must be redeveloped.
available human, natural and financial re-
The development of a competitive private
sources. In this partnership a critical role must
sector will depend on establishing access to
be played by the private sector. Significantly
foreign markets and developing viable ex-
reducing poverty will require substantially in-
port activities.
creasing employment which depends on main-
taining high rates of economic growth in the Critical markets for land and finance are
years ahead. It is not sufficient to rely on the largely undeveloped, limiting the ability of
Government and the international community private investors to establish and operate
to sustain the high rates of investment needed businesses. Property rights are often con-
to generate the levels of employment to have a tested or difficult to defend.
major impact on reducing poverty. As the
Afghanistan is experiencing high popula-
macroeconomic projections presented in Chap-
tion. Continued rapid population growth
ter 4 indicate, a substantial increase in private
will substantially increase the levels of in-
investment will be essential if significant pro-
vestment that will be required to substan-
gress is to be realized in meeting the social and
tially reduce poverty.
economic objectives of the country.
Both the Government and the international
Afghanistan is a country with significant po-
community recognize that prolonged aid de-
tential for economic development. It has sub-
pendency will undermine the chances of
stantial water, agricultural and mineral re-
achieving sustained economic growth and pov-
sources and is well positioned to become a
erty reduction. However, given the major limi-
trade and business hub linking the markets of
tations in the economic environment that must
Central Asia, the Middle East, South Asia and
be addressed, the successful transition to a
China. The potential exists or sustainable eco-
competitive market economy will require sus-
nomic growth in the future. However, there
tained commitment by the Government, with
are a number of fundamental limitations in the
the support of the international community.
economic environment that must be addressed
Simply creating conditions in which the private
if these efforts are to succeed:
sector can operate alone will not be sufficient.
Increased efforts by both the Government and
The country’s ‘hard infrastructure’, includ-
the donor community to attract Afghan and
ing roads and reliable supplies of water
foreign investors are needed if the goals of the
and power, is inadequate to support rapid
ANDS are to be realized.
and sustained economic growth.
The corresponding ‘soft infrastructure’, Social and economic development will also be
which includes the human and institutional severely curtailed if the insecurity that prevails
capacity necessary for an economy to func- is not resolved. Despite the considerable efforts
tion, is also extremely limited. Consider- by the Government and the international com-
able emphasis is being given to developing
capacity in both the public and private sec-
tors and to institutional development, but
1
these efforts will take time. Many of the government’s initiatives in this area are described
in “A Policy for Private Sector Growth and Development” pre-
sented at the Enabling Environment Conference, Kabul, June
2007.
4 Afghanistan National Development Strategy (ANDS)
27. munity, security has steadily deteriorated since sectors of security, governance, and develop-
2004 in some parts of the country. Ongoing ment, including the cross-cutting goals of
cross-border activities, particularly in the counter-narcotics. To implement its obligations
southern and southeastern provinces, have re- under the Afghanistan Compact, the Govern-
sulted in several areas being effectively off lim- ment developed the Afghanistan National De-
its to meaningful development assistance. velopment Strategy (ANDS) to clarify existing
conditions, establish objectives and define the
The lack of stability reduces the ability of aid policies, programs and projects needed to
agencies and the Government to operate in achieve those objections. The international
many areas and to effectively implement pro- community made new pledges of financial and
jects and programs. The impacts of these limi- security assistance and set out to improve its
tations typically fall most heavily on the poor. coordination by renewing and upgrading the
Insecurity also increases the cost of doing busi- UN Assistance Mission for Afghanistan
ness and undermines private sector growth (UNAMA), headed by a Special Representative
and development.2 The difficulties in main- of the Secretary General with enhanced powers
taining security contribute significantly to two for coordination.4
closely related issues: increasing corruption in
the public sector and the rapid growth of the The ANDS represents an important milestone
narcotics industry. There is a consensus that in the efforts to rebuilding of Afghanistan
corruption in Afghanistan is widespread and which has been underway since late 1380
has been getting worse.3 Public corruption (2001). During this time there have been a
represents a major disincentive for private in- number of reports, conferences and strategies
vestment, substantially increasing the costs and developed to address Afghanistan’s chal-
risks of doing business. A lack of security in lenges.5 In addition, the Government and the
some parts of the country has created condi- international community have entered into a
tions in which poppy cultivation has flour- series of agreements concerning the direction
ished, feeding a growing narcotics industry and support for the country’s development
that both funds terrorist activity and feeds pub- efforts, including notably the Bonn Agreement,
lic corruption. Although poppy cultivation has the commitment to the Millennium Develop-
been greatly reduced in 29 of the 34 provinces, ment Goals (MDGs) and the Afghanistan
in the remaining five it has seen explosive Compact. The ANDS builds on all of these and
growth to where Afghanistan accounts for provides a comprehensive and integrated strat-
around 90 percent of the world’s opium pro- egy that reflects recent experience and current
duction. conditions.
INTERNATIONAL SUPPORT THE AFGHANISTAN
FOR AFGHANISTAN NATIONAL DEVELOPMENT
After the fall of the Taliban, the international STRATEGY
community’s response was not only military The Afghanistan National Development Strat-
but also began to provide Afghanistan with the egy (ANDS) represents the combined efforts of
institutional and financial resources to start the the Afghan people and the Afghan Govern-
state building process. In 2006, the Afghani- ment with the support of the international
stan Compact agreed between the Government community to address the major challenges
and international community established goals facing the country. To comprehensively ad-
for state building, setting benchmarks in core
4
Afghanistan has also placed special emphasis on good relations
2
For example, the World Bank “Investment Climate Assess- with its neighbors, particularly Pakistan. The two countries con-
ment” reported that companies are typically spending as much as vened a joint Peace Jirga in August 2006, and Afghanistan looks
15 percent of total sales on security costs. forward with hope and optimism to enhanced cooperation with
3
Pakistan.
For example, in the 2005 Transparency International “Corrup-
5
tion Perceptions Index” Afghanistan ranked 117th (of 158); two Details for many of the key documents can be found in the
years later the country was ranked 172nd (of 179). bibliography.
Introduction 5
28. dress the security, governance, and develop- each of the 34 provinces.6 In addition, a com-
ment needs of Afghanistan, the government prehensive series of sector and ministry strate-
has developed the ANDS. The ANDS reflects gies were developed that address all aspects of
the government’s vision, principles and goals social and economic development. The result
for Afghanistan which builds on its commit- of this inclusive process is a national strategy
ment to achieve the Millennium Development that is fully reflective of the aspirations of the
Goals by 2020 and the implementation of the Afghan people. The ANDS is the product of
Afghanistan Compact benchmarks. The strat- extensive consultations at the national, provin-
egy is based upon an assessment of current cial and local levels. The Government is com-
social and economic conditions; offers clear mitted to programs and projects that directly
intermediate objectives; and identifies the ac- target the poorest and most vulnerable groups
tions that must be taken to achieve these na- for assistance. Well targeted poverty reductions
tional goals. The ANDS largely focuses on the programs are emphasized both in the strategy
next five years, but reflects Afghanistan’s long- for social protection and integrated into the
term goals which include the elimination of design of strategies across the other sectors of
poverty through the emergence of a vibrant the economy.
middle class, an efficient and stable democratic
political environment and security throughout The remainder of the ANDS is organized as
the country. follows:
Despite the full commitment of the Govern- Chapter 1: provides an overview of the
ment and the considerable assistance being ANDS
provided by the international community, it
Chapter 2: explains ANDS extensive par-
will not be possible to fully achieve all of these
ticipatory process to ensure ownership
objectives during the next five years. Therefore
it is essential that well defined priorities be es- Chapter 3: presents the poverty profile of
tablished that reflect the relative contributions the country, a key foundation for ANDS’s
of potential policies, programs and projects policy based on evidence approach
towards reaching these goals. This is a difficult
Chapter 4: presents the macroeconomic
process. The contribution of any project to in-
framework for the economy. It discusses
creasing economic growth is uncertain and is
the policies intended to maintain economic
inevitably contingent on progress in other ar-
stability, the initial planning on resource al-
eas. It also requires a careful analysis of bene-
locations for the ANDS period and the total
fits versus costs with alternative allocations of
resources available for the implementation
resources. As a result, the prioritization of ac-
of public sector programs and projects
tivities should be seen as an ongoing process
through the external and core budgets.
that adapts to changing circumstances and the
results of program and project appraisal work Chapter 5: presents the strategies and pri-
on alternative use of resources. In meeting this orities relating to Security pillar
challenge, the ANDS aims to establish institu-
Chapter 6: presents the strategies and pri-
tional mechanisms that will include the Afghan
orities relating to Governance, Rule of Law,
people, the Government, civil society and the
Justice and Human Rights pillar.
international community in identifying priori-
ties in an evolving environment. Chapter 7: presents the sector strategies
and priorities relating to Economic and So-
A comprehensive ‘bottom-up’ approach was cial Development pillar. This addresses
used in the development of the ANDS that has private sector development, energy, trans-
taken into account all aspects of social and eco- port, mining, education, culture, youth and
nomic life as well as fully reflecting the diver- media, agriculture and rural development,
sity of people in all parts of the country. Con- public health, social protection and refu-
siderable efforts were made to ensure that sub-
national consultations (i.e., outside of the cen-
tral government in the capital Kabul) identified
the priorities of the Afghan people living in 6
The Provincial Development Plans (PDPs) that were developed
as part of this process are presented in ANDS Volume III.
6 Afghanistan National Development Strategy (ANDS)
29. gees, returnees and internally displaced Chapter 10: discusses the integrated ap-
persons. proach implementation framework of
ANDS
Chapter 8: discusses critical cross-cutting
issues that have impacts across all sectors. Chapter 11: discusses monitoring, coordi-
These include regional cooperation, nation and evaluation requirements of the
counter-narcotics, anti-corruption, gender ANDS
equality, capacity building and environ-
mental management. Volume II: includes 17 sector strategies, 6
strategies for cross cutting issues and 38 indi-
Chapter 9: discusses aid effectiveness
vidual ministry and agency strategies.
measure that needs to be taken jointly by
the Government and the international
Volume III: discusses the participatory process
community
used in developing the ANDS, 34 Provincial
Development Plans and development priori-
ties.
Introduction 7
33. CHAPTER 1
THE ANDS: AN OVERVIEW
The overriding objective of the ANDS is to sub- experience it. In so doing, a broader choice of
stantially reduce poverty, improve the lives of poverty actions based on the specific concerns
the Afghan people, and create the foundation of the poor have been established for each
for a secure and stable country. This requires province, as well as each district.
building a strong, rapidly expanding economy
able to generate the employment opportunities Key issues identified by stakeholders included:
and increasing incomes essential for poverty (i) the lack of access to clean drinking water in
reduction. The ANDS establishes the Govern- all provinces; (ii) the needed improvement in
ment’s strategy and defines the policies, pro- provincial roads; (iii) the poor quality of public
grams and projects that will be implemented services; (iv) poorly trained teachers and doc-
over the next five years and the means for ef- tors; (v) the lack of alternatives to poppy culti-
fectively implementing, monitoring and evalu- vation; (vi) the lack of vocational training for
ating these actions. The goals included in the returnees and disabled people; (vii) poor access
ANDS are fully consistent with the commit- to electricity; (viii) corruption within the public
ments entered into in previous strategies and administration particularly respect to the secu-
agreements and build on the considerable pro- rity services. The Government has examined a
gress that has been achieved since 1380 (2001). range of poverty actions based on the specific
While focus of the ANDS is on the next five concerns of the poor including vulnerability,
years, it will continue to adjust to changing cir- conflict sensitivity, insecurity and governance.
cumstances – it is intended to be a ‘living
document’. The ANDS lays out the strategic priorities and
the policies, programs and projects for achiev-
The ANDS serves as the country’s Poverty Re- ing the Government’s development objectives.
duction Strategy Paper (PRSP). As such, it es- These are organized under three pillars: (i) Se-
tablishes the joint Government/international curity; (ii) Governance, Rule of Law and Hu-
community commitment to reducing poverty; man Rights; and (iii) Economic and Social De-
describes the extent and patterns of poverty velopment.
that exist; presents the main elements of its
poverty reduction strategy; summarizes the
projects and programs that will assist the poor; SECURITY
and provide a three-year macroeconomic Security and stability in all parts of the country
framework and three-year policy matrix rele- is essential for economic growth and poverty
vant to the poverty reduction efforts. The reduction. Afghanistan still faces a number of
PRSP has been prepared based on an inclusive serious challenges before it can assume full re-
consultative process to ensure broad participa- sponsibility for this. International terrorists
tion and support, while also ensuring policies and domestic extremists prevent the Govern-
are based on evidence. A public policy dia- ment from establishing effective control in
logue with all key stakeholders was carried out some areas, particularly in the south and south-
across all provinces, allowing government offi- east. The large-scale production of narcotics
cials, private sector representatives, NGOs, the continues to provide funds to these groups.
media and ordinary citizens an opportunity to Unexploded ordinance remains a significant
discuss local conditions and concerns. This threat to Afghans, with some five thousand
allowed these communities to participate effec- citizens either killed or wounded in mine ex-
tively in defining the poverty problem as they plosions since 1380 (2001). Currently only two
The ANDS: An Overview 5
34. of the country’s 34 provinces are completely and non-state governance entities; (ii) the con-
clear of land mines. A long standing presence fusion over core centre-periphery administra-
of illegal armed groups in different parts of the tion and fiscal relations; (iii) weak public sector
country is hindering the process of empower- institutions and underdeveloped governance
ment of local democratic institutions. Some of and administrative capabilities; (iv) high levels
these groups have close links with police or of corruption; (v) fiscal uncertainty; (vi) weak
even belong to local governments. This situa- legislative development and enforcement; (vii)
tion enhances corruption and is considered a weak political and parliamentary oversight
key obstacle in cracking down the narcotics capacities; (viii) weak community and civil so-
industry. ciety institutions; (ix) limited capacity in a jus-
tice system; (x) gender inequality; and (xi) un-
The Government is fully committed to, and is derdeveloped human rights enforcement ca-
giving the highest priority, to successfully: (i) pacities.
implementing an integrated and comprehen-
sive national security policy and strategy; (ii) If significantly improved governance is not
building a robust security sector reform pro- rapidly achieved it will be difficult to make
gram; (iii) strengthening civil and military op- substantial progress with respect to security
erations and coordination; (iv) increasing the and economic development. An emerging po-
role of security forces in counter-narcotics ac- litical and administrative vacuum will be filled
tivities; and (v) strengthening the civilian com- by non-state structures driven by illegal and
ponents of security entities. Detailed Compact narcotic interests, not by the Government.
benchmarks have been established to measure
progress in improving capacity within the se-
curity organizations and improving security.
Religious affairs
The Government will focus on the following
Significant progress has been made since 2001 priorities: (i) to improve infrastructure for reli-
in strengthening the ANA and ANP. For ex- gious affairs, such as mosques, shrines, holy
ample, militias have been integrated into the places, and religious schools; (ii) improve the
Ministry of Defense (MoD), with the majority training and capacity of Imams, preachers, reli-
demobilized. A multi-sector donor support gious teachers and other scholars to raise pub-
scheme has been established where individual lic awareness and to teach; (iii) finalize a com-
donors are allocated responsibility for oversee- prehensive culture curriculum for primary and
ing support for each of the key elements of the higher education; (iv) strengthen Hajj arrange-
reform, including: disarmament, demobiliza- ment systems for Afghan pilgrims; (iv) support
tion, and reintegration of ex-combatants; mili- efforts by religious organizations to help allevi-
tary reform; police reform; judicial reform; and ate poverty and protect vulnerable groups; (v)
counter-narcotics. The ANP has been receiving support efforts of the other government agen-
extensive training and equipment from the in- cies to improve literacy, dispute resolution and
ternational community. to contribute to strengthening of the national
solidarity. The expected results include: (i) re-
forms implemented in line with Islamic values;
GOVERNANCE, RULE OF (b) improved infrastructure and financial sus-
LAW, JUSTICE AND HUMAN tainability of religious affairs, particularly of
RIGHTS the religious education system; (iii) greater par-
ticipation of Islamic scholars in raising aware-
In 2000 the World Bank assessed the ‘quality’ of ness about importance of implementation of
Afghanistan’s governance institutions as falling key reforms; (iv) a greatly strengthened role of
in the bottom one percent of all countries. Pro- the religious institutions in programs for pov-
gress since 2001 includes the adoption of the erty reduction.
constitution; successful parliamentary and
presidential elections, and progress in improv-
ing the livelihood and welfare of women and ECONOMIC AND SOCIAL
other disenfranchised groups. Despite some DEVELOPMENT
progress, a number of significant issues must
be addressed, including: (i) the existence of The economic and social development strategy,
multiple and often parallel structures of state vision, objectives and expected outcomes have
6 Afghanistan National Development Strategy (ANDS)
35. been prioritized within the overall macro-fiscal growth and development. These steps will: (i)
framework to allow a logical progression of improve general levels of efficiency in the
investments that systematically overcome the economy; (ii) assist in eliminating corruption;
core binding constraints to growth and social (iii) encourage better resource allocation, and
development. An integrated approach focuses (iv) generate increased government revenues.
investments through the sector strategies
summarized below. The sector strategies were An open trade policy will facilitate a competi-
developed based on strategies first put forward tive environment for private sector develop-
by individual ministries and groups of minis- ment, avoid the high costs incurred with pro-
tries. Although Ministry strategies were the tectionist policies and facilitate Afghanistan
starting point, the sector strategies are broader becoming better integrated as a ‘trading hub’ in
than those of the ministries for several very the region. Any proposals to provide protec-
important reasons. First, the sector strategies in tion to particular industries will be evaluated
many cases involve actions and programs that with a proper ‘economy wide’ perspective that
need to be undertaken by several ministries. fully accounts for the costs and benefits from
Considerable attention has therefore been such actions, including the negative impacts on
given to developing better coordination be- other firms and on the consumers who must
tween ministries through Inter-Ministerial pay higher prices. Increased priority will be
Committees. The sector strategies have also given to regional economic cooperation initia-
taken account of donor activities being imple- tives aimed at developing regional transporta-
mented outside of ministries and informed by tion and transit infrastructure, facilitating re-
the Provincial Development Plans (PDPs). The gional trade and investment flows and devel-
success of the sector strategies will be heavily oping Afghanistan as a regional business hub
dependent on resource effectiveness, revenue linking Central and East Asia with the Middle
enhancement and fiscal sustainability, human East and South Asia.
and natural resource development and invest-
ments in productive and trade-based infra- A second major component of the private sec-
structure and private sector driven develop- tor development strategy attempts to encour-
ment. age increased private sector investment by cre-
ating investor friendly regulatory frameworks
for private sector operations in the develop-
Private Sector Development ment of natural resources and infrastructure.
The ANDS strategic objective is to enable the This approach has been very successful in the
private sector to lead Afghanistan’s develop- telecommunications sector, where phone usage
ment within a competitive market-based econ- went from less than 15,000 under a state mo-
omy in which the Government is the policy nopoly to over five million subscribers as pri-
maker and regulator of the economy, not its vate investments in cellular communication
competitor. The establishment of a strong ena- were encouraged. Significant initiatives are
bling environment for a competitive private included in the sector strategies for energy,
sector is an on-going effort by both the Gov- mining and agriculture based on leased access
ernment and donors. Almost all sector strate- to state lands to strengthen these investor
gies involve the development of new legisla- friendly regulatory frameworks, and pilot pro-
tion. The Government will enact and imple- jects and innovative initiatives are being inves-
ment key laws and amendments to establish tigated to allow public funding to support pri-
the basic legal and regulatory framework that vate sector activities in the provision of educa-
will encourage private sector involvement in tion services, vocational training and public
social and economic development. Almost all health services.
sector strategies involve institutional strength-
ening that is designed to improve the ability of A third and closely related component of the
ministries and other agencies to administer leg- strategy is based on a concerted effort by the
islation in an unbiased and predictable manner. Government and the donor community to
more vigorously promote private sector in-
Privatization and corporatization of state vestment. Given the limited capacities in the
owned enterprises is an on-going program that public sector and in the nascent domestic pri-
is on schedule. It represents an important step vate sector, much of this effort will focus on
in expanding the scope for private sector trying to encourage foreign firms with the ex-
The ANDS: An Overview 7
